IATA plans inclusion of digital currencies starting with China's e-Renminbi

Research

Kim Macaulay Chief Information & Data Officer | International Air Transport Association - IATA

By Sky Industry News

Oct 29, 2024

The International Air Transport Association (IATA) has announced plans to incorporate digital currencies into its financial settlement systems. The initial offering will be the digital Renminbi, set to be available in the China Billing and Settlement Plan (BSP) by the end of 2024. "China is one of the most advanced countries in the world in the adoption of digital currency. Recognizing the trend, IATA’s China Airline Committee requested for the digital Renminbi to be included in the BSP. This is an important development and IATA will accommodate the digital Renminbi by year-end," stated Albakri.

IATA is also exploring options to include other digital currencies based on industry needs. "The experience gained in introducing the digital Renminbi will help IATA in onboarding other digital currencies in the future," Albakri added.

In July 2024, IATA expanded its IATA Currency Clearance Service (ICCS) by adding the Renminbi Offshore (CNH), increasing its total currency offerings to 74. The ICCS serves as a global cash management system for airlines, facilitating worldwide repatriation of sales funds into preferred currencies. This service aims to enhance working capital management and minimize foreign exchange risks.

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Albakri emphasized customer-centric payment solutions: "At the heart of integration of the digital Renminbi and all other settlement system work is a need to serve the customer and adapt to their behavioral changes in payment methods. Payment should be seamless. A customer shouldn’t be frustrated by not having their payment method of choice available. Nor should airlines lose out on deriving proper value from their ticket sales."

Organizations Included in this History

International Air Transport Association - IATA

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